Operations Improvement Plan Implementation

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unit_4_management_strategy.docx

Management Strategy

8

Furtherance Analysis on Operation Improvement Plan

Introduction

On the previous assignment, operations improvement plan was defined as the action to advance all interests of the organization through restructuring the business processes operations rather than dealing with the existing problems. In this discussion, I will endear to further analyze the operations improvements plans on the Toyota Company, specifically, on how the Company management handles challenges through implementing new strategies: for this to reach, further data will be researched, and verified.

Discussion

Part 1

1. After the analysis of cause and effect and the flow charts results, it is important to note that the company lacks the proper communication. This deficiency is perhaps the cause and particular root to all company’s problem.

2. The flow chart result and that of the cause and effect diagram doesn’t conflict, they are all coherent to one another.

3. The created cause and effect diagram in the previous assignment posits all relevant information for the improvement process in the company, all process steps were documented.

4. Further research is not needed on the identified causes on cause and effect diagram previously created. This is because all causes are all related and similar, and perhaps because communication as a cause has been already identified.

5. Because of the Toyota company structure which is subsidiary, there is no additional information from the key stakeholders, however, designation of the new strategy will be done and all stakeholders will be informed properly.

6. None of the information will impact change on the statement’s problem, instead, the information will aid in making the improvement and make the cause more effective.

BEFORE AND AFTER FLOW CHART

Toyota’s ineffective process (before)

Problem has been identified (communication)

1. Products quality not monitored

2. Ineffective communication

Company responds to regulatory probes and lawsuits

Toyota ineffective process (with revision)

Recall of the problem

Company’s denial

Company pays millions in penalty

Toyota effective recommended process (after)

Effective communication

Stakeholders’ notification

Consumers’ notification

Problem identified Evaluation of issue by leadership team

Close observation of manufacturers

New components supplier

Issue resolved

The before and after flow charts shown, identifies the rectification done in the previous chart in the assignment. In order to identify the changes made, I outlined all charts together. The problem of the statement will not be affected in any way by the rectification made, the newly created flowcharts outlines the cause narrowly which makes it more-straight forward to understand. The previous flow chart depicts unacceptable strategy where the Toyota Company handled recall crises; as opposed to the newly recommended flow chart which reveals the proper way of handling the problem.

Part 2

Measurement strategy

The measurement strategy was comprehensive and it encompassed various communication aspects and the engagements. The significant of the strategies’ measurement is to manage, learn and hence improving the performance of the organization and effectiveness. According to Simons, R., & Villa, A., either of the strategy measure defines and identifies the goal and how to achieve them effectively through identification of the implemented plan which makes it a going concern in the business. (Simons)

The strategy measure that I will employ in the analysis OIP is the measurement of strategic performance. According to the research done by SPM, this performance is useful in the areas below;

1. Communication

2. Implementation

3. Organization strategy

4. Corporate strengthening and reputation

5. Motivation

Because the company lacks the proper communication, which has sent the company to lose its reputation, SPN can be used as a functional strategic process for the Toyota Company. This will make the company restore itself on right path. This strategy can trigger capabilities creation and enhance establishments of the organization culture. The company should dwell on played roles despite redefining indicators and targets, hence rethinking on empowerment and alignment balance. Understanding is emphasized in the quantitative information than the simple measurement rather. (Matos)

This quantitative information is more subjective discipline which looks beyond percentage so as to understand customer feeling, viewpoints and impression. The quantitative strategy which applies to the OIP is the key success indicators (KSI), since it helps the organization measure and to define progress of the organization goals. The Toyota Company will employ KSI, because it relies on good understanding to improve the organization. It is significant for the company to evaluate the KSI’s strategy because it monitors company’s goals ensuring that, achievements are not distracted. Unfortunately, GM regained its leading position in automaker industry, but with this strategy, the primary objective is to see that, the Toyota Company restores its position. (Matos)

Measurement strategy

The measurement strategy will constitute three stages: refine, align and gather. Gathering stage assists the stakeholders get best understanding of the company’s goals and requirement to achieve the objective. The refine stage carefully communicates, evaluates and clarifies the goal which may come in the process of process improvement. On the other hand, align stage is the stage in which implementation of the new strategies measure will take place. This assists the company to define KPIs to ensure proper action and performance. Creswell, J. (2003). However, the process is costly to the company, but objective is to look for opportunity and mitigate threat. It is significant for the company also to endear in the re- evaluation of the strategies periodically when the business objective changes.

References

Simons, R., & Vila, A. (2000). Performance measurement & control systems for implementing strategy. Upper Saddle River, N.J.: Prentice Hall.

Matos, A., & Seese, D. (2000). Selecting the right key performance indicator (KPI) and their value drivers in a balanced scorecard (BSC) approach using sap R/3.

Creswell, J. (2003). Research design: Qualitative, quantitative, and mixed method approaches (2nd ed.). Thousand Oaks, Calif.: Sage Publications.